Exercise 21-11 (Algo) Direct materials and direct labor variances LO P3

Lucia Company has set the following standard cost per unit for direct materials and direct labor.

Direct materials (15 pounds @ $4 per pound)	$ 60
Direct labor (3 hours @ $15 per hour)	45

During May the company incurred the following actual costs to produce 8,200 units.

Direct materials (125,500 pounds @ $3.80 per pound)	$ 476,900
Direct labor (27,900 hours @ $15.10 per hour)	421,290

AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.

Exercise 21-11 (Algo) Direct materials and direct labor variances LO P3 Lucla Company has set the following standard cost per unit for direct materlals and direct labor. Direct materials (15 pounds @ \$4 per pound) $60 Direct labor (3 hours @ \$15 per hour) 45 During May the company Incurred the following actual costs to produce 8,200 units. Direct materials (125,500 pounds @$3.80 per pound) $476,900 Direct labor (27,900 hours @$15.10 per hour) AR= Actual Rate SR= Standard Rate AQ= Actual Quantlty SQ= Standard Quantity AP= Actual Price SP= Standard Price (1) Compute the dlrect materlals price and quantity varlances. (2) Compute the direct labor rate varlance and the direct labor efficlency varlance. Complete this question by entering your answers in the tabs below. Exercise 21-11 (Algo) Direct materials and direct labor variances LO P3 Lucla Company has set the following standard cost per unit for direct materlals and direct labor. Directmaterials(15pounds@$4perpound)Directlabor(3hours@$15perhour)$6045 During May the company Incurred the following actual costs to produce 8,200 units. Directmaterials(125,500pounds@$3.80perpound)Directlabor(27,900hours@$15.10perhour)$476,900421,290 AR= Actual Rate SR= Standard Rate AQ=Actual Quantlty SQ= Standard Quantity AP= Actual Price SP= Standard Price (1) Compute the direct materlals price and quantity varlances. (2) Compute the direct labor rate varlance and the direct labor efficlency varlance. Complete this question by entering your answers in the tabs below. Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places.)